Tuesday, December 20, 2011

Shares of Winn-Dixie Stores Inc. (NASDAQ:WINN) skyrocketed on Monday on news of a $560 million bid from competitor Bi-Lo LLC.

The deal was approved by the board of Winn-Dixie, and is expected to close within 60 to 120 days. The bid equals $9.50 a share.

According to BI-Lo Chairman Randall Onstead, there are no overlap of stores, which should allow for a smooth and unhindered transition of the deal, and also should result in all stores being kept open.

This would make the combined company the 9th-largest in the U.S. Assuming the deal goes forward, Winn-Dixie will be taken private.